News: Netccentric raises $12.5 million to fund growth

Netccentric (ASX:NCL) has joined other Singapore-based ASX-listed technology companies after raising $12.5 million through its heavily oversubscribed initial public offering priced at $0.20 per share.

Cornerstone investors for the raising, which fully utilised the over-subscription facility of $2.5 million, included a number of high profile Asian business leaders, as well as domestic and foreign institutions, providing strong support and business validation.

The company operates six subsidiary businesses that provide a full suite of product offerings to deliver high impact and effective results across multiple geographies, including Australia, Singapore, Malaysia, Thailand, Philippines, China and the UK.

Three of its associated businesses are marketplaces, which aggregate bloggers and social media influencers.

Netccentric connects advertisers across the Asia-Pacific Region (APAC) with nearly 1 million blogs and over 230,000 social media influencers.     

It has the ability to generate highly scalable revenues via revenue sharing arrangements with the publishers.

The company has a strong activity pipeline with three countries targeted for near-term expansion; Indonesia, Vietnam and Taiwan, and significant progress of mobile growth strategy –over 370,000 registered users of Dayre, the company’s proprietary mobile blogging application.

Netccentric is now well capitalised and optimally positioned to execute on its business strategy, with near-term news flow expected as the business accelerates growth across new and existing regions and rolls out further product offerings.

IPO proceeds will be raised to accelerate this growth through marketing initiatives, continued investment in technical innovation and working capital.   

The company has been profitable from the outset since it was founded in 2006 on an initial $55,000 investment.

Since then, it has grown its revenues to $11.1 million at the end of FY2014, a 35% increase on the previous FY2013.

The company is well positioned to benefit from the growing social media advertising spend in APAC, which could grow to US$62 billion by 2018.

Netccentric follows companies such as Migme (ASX:MIG), Fatfish (ASX:FFG) and Asia Pacific Digital (ASX:DIG).

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